Liquidity crisis in Iraq is "worsening".. 70% of money is hoarded in homes
The head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, confirmed today, Friday (January 17, 2025), that the liquidity shortage crisis in Iraqi financial institutions is becoming more complicated, attributing the reason to the hoarding of 70% of money inside homes and the lack of interaction of large segments of society with the banking system.
the video for this blogpost is below here:
Al-Tamimi said in an interview with Baghdad Today, "The lack of liquidity is something we expected two years ago, and we warned about it repeatedly, especially with citizens continuing to hoard money inside their homes instead of depositing it in government or private banks, in addition to the absence of real investments for frozen money."
He added, "The current situation requires a clear government roadmap that includes incentives to encourage citizens to deposit their money in banks, and to mobilize the hoarded funds through investment projects capable of attracting companies and businessmen to participate."
He pointed out that "the state has great financial capabilities, but the liquidity crisis will increase with time if serious steps are not taken. Among them is the actual implementation of the Cabinet's decision to move to electronic payment in markets and economic activities, which will combat smuggling and limit the circulation of counterfeit money."
Al-Tamimi stressed that "implementing this decision will contribute to solving no less than ten problems that the Iraqi markets and economy suffer from, provided that the chambers of commerce are supported with the appropriate tools to implement the decision and provide high flexibility in the procedures to encourage citizens to interact with these mechanisms, which will achieve great economic gains."
Earlier today, economic affairs expert Alaa Al-Fahd revealed the reason for the recent increase in gold imports into Iraq.
Al-Fahd told Baghdad Today, "The increase in gold imports has several economic implications, including that citizens are working to keep gold as part of their savings, as it is more reliable and stable, as a result of the fluctuations in the dollar."
He explained that "the other reason is an improvement in income levels with a savings surplus, and this is what drives citizens to buy gold, and this is part of the positive situation, as the process of increasing gold imports is a healthy economic situation, and this is reflected in the Iraqi market."
The three-year budget and its final year
Written by Dr. Bilal Al Khalifa
For the first time, Iraq has enacted a federal general budget for three years instead of one year, although most of the articles of the constitution and Financial Management Law No. 6 of 2019 referred to the budget as annual, but the government made an exception and made it a three-year budget.
Most economists, including me, warned against legislating this budget, as well as changing the budget method from a materials budget to a programs budget, etc., but to no avail.
Knowing that the legislation of the Federal General Budget Law was on June 26, i.e. late, and that the instructions to facilitate the implementation of the budget were issued on August 7, 2023, i.e. at the end of the third quarter of the year, knowing that most of the components of Parliament are participating in the government, i.e. almost this session, Parliament is mostly with the government, and therefore there is no opposition to the government or Parliament, which means that it is easy to pass any decision or legislation, and among those legislations is the Federal General Budget Law.
The aim of approving a three-year federal general budget was to accomplish the government’s program by not delaying the approval of the federal general budget in other years, i.e. 2024 and 2025, but Federal General Budget Law No. (13 of 2023) stipulates that budget tables must be prepared and submitted to the House of Representatives.
In 2024, Iraq did not have a general budget because it did not approve the budget tables until after a great deal of debate. In the middle of the year, on 7/3/2024, when it was sent to the federal government, everyone was shocked by the government’s letter to parliament inquiring about the difference in the three tables, that is, the one that was sent, the one that was voted on, and the one that reached the government. This means that there is great manipulation, and the matter should have been investigated because the difference is tens of billions of dollars.
The result is that the year 2024 has ended and Iraq does not have general budget schedules, and therefore the ministries do not have investment budgets and do not know their financial ceilings.
The 2025 schedules were supposed to be approved at the end of 2024, i.e. before the start of the new year, and thus the government’s economic program would be implemented from day one.
The Ministry of Finance indicated that the most prominent challenges facing the ministry in implementing the 2024 budget and the deficit in it came as a result of the federal government paying more than 11 trillion in salaries to employees of the Kurdistan Region, as the region's non-oil revenues amounted to more than 4 trillion dinars, Erbil only sent 320 billion dinars to Baghdad, while the authorities in Kurdistan did not hand over the region's oil and non-oil revenues to the center, which negatively affected the financing of other governorates.
She also said that it is necessary to approve the federal general budget schedules for the year 2025 because there are a number of challenges in the context of not approving the budget, including stopping annual allowances for employees, stopping transfers between ministries and companies, and the necessity of not entering into new contracts and other matters.
But there are several notes in particular:
1- Last year there were no approved schedules and the matters mentioned have passed.
2 - The three general budget tables for last year were not referred to, and the negligent party was not held accountable.
3 - The Ministry was late in submitting the tables to Parliament, and thus it violated the Financial Management Law No. 6 of 2019, Article (11), which states (The Council of Ministers shall discuss the draft federal general budget law, approve it, and submit it to the House of Representatives before mid-October of each year).
4 - At the same time, we notice that there are appointments, and this contradicts the above, because how can a new financial allocation be made and at the same time there is no financial allocation for an old employee?
5 - The statement also reveals the failure of the main goal of approving a three-year budget.
6 - The major challenge in providing cash liquidity and not financial allocation for employees and retirees has not been clarified.
7 - The amount of currency sales has not been clarified after the dollar selling window was closed and a large amount of dollars continued to be sold.
8 - The budget represents the government’s economic plan, and any failure in it will be reflected in the government’s performance and policy.
9 - The official sponsor of the government is the State Administration Coalition, which includes almost everyone, and it is also concerned with the failure to legislate or approve the budget schedules.
The statement of the Ministry of Finance is very correct from a technical and administrative standpoint, and pressure must be put on politicians to approve the budget, and this statement is one of the methods of pressure.
Director of Al-Nasik Islamic Bank: We pay great attention to electronic payment
The Managing Director of Al-Nasik Islamic Bank, Dr. Abdul-Hafiz Abdul-Latif, confirmed that the paths of developing electronic payment in Iraq are proceeding according to the country’s needs.
He said: The citizen's interaction with electronic services has become clear and the banking system inside Iraq has begun to indicate it, and this is in harmony with the directions of the government and the Central Bank of Iraq.
He added that the management of Al-Nasik Islamic Bank pays great attention to developing the reality of electronic payment and developing the reality of performance in this important aspect.
He pointed out that keeping pace with global developments in the financial sector is a priority for the bank's management, as we realize that the Iraqi economy needs to develop the banking system and raise it to global performance.
Finance issues a statement regarding the suspension of transfer of services to employees
Today, Friday, the Ministry of Finance issued a statement regarding the suspension of procedures related to the transfer of services, promotions, and the calculation of contract services, press services, and advocacy.
The ministry stated in a statement received by "Mil" that "based on the Ministry of Finance's circular No. (555) for the year 2025, the ministry would like to clarify that the procedures related to stopping the transfer of services, promotions, calculating contract services, press and legal services, and others, are regulatory procedures that are adopted annually to accurately determine financial allocations."
She added that "transferring services from one entity to another requires transferring allocations, which currently cannot be implemented due to the lack of 2025 budget schedules, as this allows knowing the financial allocations for each entity to ensure that there are no violations or imbalances in the financial distribution."
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The Central Bank of Iraq denies the intention to close cash delivery outlets
The Central Bank of Iraq called for caution in transmitting and circulating news about the closure of exchange outlets, and confirms that no decision, directive or statement has been issued regarding the closure of outlets or their conversion into exchange companies.
The Central Bank said in a press statement that its recently issued statement stipulates expanding the spread of cash delivery outlets through all available channels, including ATMs, POC cash payment devices, as well as authorized exchange companies, electronic payment company outlets, and POS electronic payment devices spread throughout Iraq.
The bank stressed the need to transmit news from its official sources, which are published on its official website and its verified social media pages.
He stressed that the Central Bank's circulars issued to all parties in the Iraqi financial and banking sector included directing banks and non-banking financial institutions to expand their financial services in areas that lack the aforementioned services.
Salary outlets fear a “big shock” and come out against the Central Bank in Najaf (photos)
Association representing 650 companies
Najaf
Today, Friday, the owners of what are known as the Qi Card outlets and the disbursement of salaries via smart cards organized a stand in Najaf to respond to the statements of the Central Bank that they are not licensed. They stated that they operate about 650 payment points in Najaf alone, and their sudden stop would be a “shock” to thousands of workers and their families. They also wondered about the “new competing company” that might take the opportunity instead of them.
Qasim Al-Hijami - Head of the Najaf Ports Association:
A few days ago, the Central Bank issued “strange” statements, so we, as owners of Najaf outlets, decided to hold a stand and rally to reject the monopoly of outlets in Najaf and Iraq under the pretext that they are not licensed.
We work in all circumstances and provide services to more than 95% of beneficiaries of electronic payment services, despite the many challenges in recent years, such as theft and the like.
Karar Al-Atejawi - Owner:
We have been paying salaries since 2010 to all segments of society that benefit from electronic payment services, but we were shocked by the government statements issued by the Central Bank that the outlets operating in Iraq are “unlicensed.” How have we been paying salaries for 15 years and we are not licensed?
There is talk among outlet owners about the existence of companies that may want to acquire Iraqi outlets.
These outlets provide a job opportunity for at least 4 families in each outlet, and there are about (650) outlets in Najaf, which means a new challenge for these families in addition to the economic challenges that the country is going through.
Baghdad.. Notice of military measures in the Green Zone
The Iraqi military authorities announced today, Saturday, that the shooting range located within the approaches to the US embassy complex in the Green Zone, in the center of the capital, Baghdad, will be active during the hours scheduled for today.
The Security Media Cell stated in a statement received by Shafak News Agency, "The shooting range will operate from 07:00 am until 21:00 pm, today, Saturday, January 18, 2025."
The concerned authorities called on citizens to take note of this, stressing that the measure comes within the framework of the usual military activities in the region.
8% of Iraq’s reserves depleted.. Reasons for massive dollar sales and a warning from Trump
Economic expert Manar Al-Obaidi said on Thursday, January 16, 2025, that the government of Mohammed Al-Sudani sold the highest quantities of dollars in a quarter of a century in 2024, an increase of 44% compared to the previous year, detailing the reasons and the few ways that can address this, while warning of the era of US President-elect Donald Trump and the possibility of the government failing to cover the country’s needs for the dinar.
8% of Iraq's reserves depleted amid crazy dollar sales
According to Al-Obaidi in an analysis followed by "Ultra Iraq", "the Central Bank of Iraq's sales of foreign currencies in 2024 reached record levels, the first in the past twenty-five years, as the value of the Central Bank's sales amounted to 81 billion US dollars, an increase of 44% compared to 2023, when the total sales value was 56 billion US dollars."
Regarding the reason for this increase in sales and whether it is a result of increased demand for importing goods or for other reasons, he said, “The problem with the Iraqi economy is that most of its revenues are based on selling oil in dollars specifically, and most of its expenses are in Iraqi dinars. Therefore, the higher the value of the Iraqi government’s operating and investment expenses, the more the Central Bank is forced to sell dollars to provide dinars to the central government.”
He added: "In other words, even if the value of commodity imports from various countries is reduced, the economic system will not find another solution to sell the dollar and convert it into Iraqi dinars," as "the basic problem of the Iraqi economy lies in the significant increase in operating expenses and the total dependence in revenues on oil sales, which are in dollars."
He continued: "Whenever the budget increases and operating expenses increase, there is no solution for Iraq with a fixed exchange rate except to increase the quantities of dollars sold, regardless of the amount of need for them and the reasons for selling them, whether for import purposes or other purposes."
According to Al-Obaidi, “the solutions before Iraq are limited and consist of reducing operating expenses, increasing dinar revenues from other sources such as customs tariffs, taxes and fees, or resorting to the solution of changing the exchange rate to maintain a fixed selling value for the dollar in exchange for changing the amount of dinars purchased through changing the exchange rate, which is believed to have political and social effects more than economic ones.”
The central bank sold $81 billion in 2024, the highest amount in 25 years.
The expert revealed the depletion of Iraq's reserves, saying: "We cannot continue in the same current way, especially since we witnessed in 2024 one of the highest years in the value of the average barrel of oil sold, but despite that, 8% of Iraq's reserves were depleted."
He concluded by saying: Today, with the onset of a new phase represented by a new, firstly strict American administration that does not consider the Middle East a strategic region for the United States, it will work to tighten control over oil sales and dollar sales, and thus we may witness the inability to cover Iraq’s need for the dinar by selling the dollar through the various mechanisms of the Central Bank.
Iraqi Economy Under Pressure: Tripartite Budget Faces Critical Test
As 2025 approaches, Iraq’s three-year budget faces a critical test, as it is supposed to have provided better financial and executive stability compared to previous annual budgets. However, the reality reveals a faltering implementation and a lack of clarity in the distribution of resources, threatening widespread economic confusion.
The three-year budget, passed under Law No. 13 of 2023, was intended to avoid delays in approving annual budgets, but Iraq faced difficulties in implementing budget calculations during 2024, which led to delays in allocating funds to projects and created financial uncertainty.
Although the detailed schedules for the 2025 budget were supposed to be approved by the end of 2024, to ensure a smooth start to the new fiscal year, this did not happen, amid warnings of serious repercussions, most notably the disruption of job bonuses, the suspension of new contracts, and the delay in implementing development projects.
Expenditure crisis and revenue challenges
Economist Dhurgham Mohammed explained to Iraq Observer that “the three-year budget was unable to set a precise ceiling for resources, which led to a widening deficit gap and delaying a number of necessary expenditures.” He added:
“Although the budget did not achieve the expected success, it is still better than its complete absence. However, the delay in issuing the schedules and implementing the budget items reduced the effectiveness of this new experience, as it did not differ much from traditional annual budgets.”
Huge revenues...and a worrying internal debt
Although Iraq achieved oil revenues of $70.4 billion in 2024, by exporting more than 2.4 billion barrels, the internal debt rose to 12.4 trillion dinars ($9.5 billion), which increases concerns about financial stability, especially since this debt had reached 70.6 trillion dinars in 2023.
The rise in domestic debt represents a major challenge, as it leads to an increase in operating spending at the expense of investment, which negatively affects the economy through higher prices and slower growth.
Will the government succeed in passing the schedules?
In light of these complications, the federal government is still racing against time to send the budget schedules to Parliament for approval, before entering into an administrative impasse that may disrupt the implementation of government projects, at a time when there are only eight months left until the end of the current government’s term.
The issue of quickly approving the financial schedules for 2025 has become necessary not only to ensure the smooth running of government operations, but also to maintain the stability of the Iraqi economy, which is facing increasing internal and external pressures.
MP on Budget Amendment Law: It is unlikely to be approved during tomorrow’s session
Today, Saturday, the representative of the Al-Fatah Alliance, Mukhtar Mahmoud, confirmed the existence of deep differences regarding amending the budget law.
Mahmoud said in a press interview followed by (Al-Mada), "It is hoped that the law will be voted on during tomorrow's session, Sunday," stressing that "there are deep differences over amending the budget law and there are reservations from representatives from different political blocs about this amendment, and therefore there is difficulty in voting on the amendment during tomorrow's session, Sunday, after it was included on the agenda by the parliament presidency."
He added, "The deep disagreements over amending the budget law may lead to breaking the quorum and failing to hold the session, as happened in last Wednesday's session. There is no prior political agreement to vote on the amendment, with a large parliamentary rejection of the amendment. Therefore, we believe that the matter requires more dialogue and understandings."
Earlier, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, announced that "the Ministry of Finance has announced that it is in the process of preparing the general budget schedules for the year 2025, in accordance with the constitutional mechanisms adopted by the aforementioned three-year budget law."
He pointed out that "based on the indicators of budget implementation over the first two years of Law No. 13 mentioned above, the financial authority has the necessary administrative and financial capabilities to submit the 2025 budget tables to take their legislative path through discussion and approval in the Council of Ministers and refer them to the House of Representatives before the end of this year."
Parliamentary Finance Committee reveals the objectives of amending the federal budget
A statement from his office, a copy of which was received by {Euphrates News}, stated that: “The meeting discussed ways to mature the proposed government amendment to paragraph 12 of the Federal General Budget Law, in a way that ensures resolving the problem of calculating the costs of producing oil in the Kurdistan Region, as a prelude to resolving the outstanding issues between Baghdad and Erbil.”
He added, "The meeting also reviewed the mechanisms for regulating the legal relationship between the federal government, the regional government, and international oil companies operating in the region's fields, by including in this amendment paragraphs that oblige everyone to implement and close the avenues for evasion and avoidance of fulfilling constitutional obligations according to specific time frames."
The meeting stressed "the necessity for the regional government to commit to exporting its oil through SOMO and informing the federal government of its oil contracts, and involving it in the management of production fields," calling on the government to "expedite sending the 2025 budget tables to the House of Representatives in order to include all accounting topics related to this amendment, including conducting a financial settlement within the framework of the established points, including oil revenues and others that have not been delivered to the central government's account."
Al-Atwani stressed that "the Finance Committee has come a long way in discussing the amendment of the budget law, and we are keen to mature it in a way that ensures its implementation and adherence to it," indicating that "this amendment represents a starting point towards building a legal relationship between the federal government and the regional government in managing the oil wealth."
He explained, "Our goal in approving this amendment is to subject the export of the region's oil to the authority of the federal government, and to end suspicions about its smuggling," stressing that "the committee urged the establishment of legal paragraphs binding on resolving the issue of calculating the costs of producing the region's oil within a specific period of time, and obligating the Erbil government to hand over the revenues to the federal government."
Iraq tells US it looks forward to strengthening cooperation with America under Trump
On Saturday, Foreign Minister Fuad Hussein informed the United States of Iraq's aspiration to enhance bilateral cooperation under the upcoming US administration headed by Donald Trump.
This came during the Foreign Minister's reception of the new Chargé d'Affaires of the US Embassy in Baghdad, Daniel Rubinstein, according to a statement received by Shafaq News Agency.
At the beginning of the meeting, Hussein congratulated Rubinstein on assuming his new duties, and while stressing the depth of Iraqi-American relations, he expressed Iraq's aspiration to enhance bilateral cooperation under the next American administration.
The meeting witnessed in-depth discussions on bilateral relations between the two countries, in addition to reviewing regional conditions, especially the situation in Syria. The two sides also touched on current political developments and the pivotal role played by Western countries, primarily the United States, in the course of events inside Syria, according to the statement.
According to the Iraqi statement, the two parties discussed the outcomes of the Riyadh Conference on Syria, which witnessed the participation of the US Under Secretary of State, and stressed the importance of following up on the recommendations that emerged from the conference.
At the end of the meeting, Hussein stressed the importance of strengthening cooperation between Iraq and the United States, in a way that serves common interests and contributes to achieving regional stability.
Al-Sudani meets US Chargé d'Affaires: Bilateral partnership in various fields
Prime Minister Mohammed Shia Al-Sudani received today, Saturday, the US Chargé d'Affaires to Iraq, Mr. Daniel Rubinstein.
During the meeting, the relations between Iraq and the United States were reviewed, as well as ways to enhance them and proceed with the implementation of joint understandings, in a way that serves the interests of the two countries and the growth of bilateral partnership in various fields.
The meeting also discussed the latest developments in the region, the situation in Syria, and the efforts made regionally and internationally to sustain the ceasefire in Gaza, the Palestinian territories, and southern Lebanon.
The Prime Minister pointed out that Iraq supports all efforts that lead to establishing security and stability and preventing the spread of conflicts, and the importance of major countries and international organizations playing their full role in preventing wars of genocide, just as he stresses the need to quickly provide relief to the people of Gaza and work on its reconstruction, after the ceasefire agreement.
Jan 16th 2025
The Iraq-British Business Council (IBBC) held a seminar in the capital, London.
A statement issued by the Prime Minister's Media Office today, Thursday, and received by the Iraqi News Agency (INA), stated that "Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein headed the Iraqi delegation, in the presence of Deputy Prime Minister for Energy Affairs, Minister of Oil Hayan Abdul Ghani, the Chairman of the Advisory Board and Technical Advisor to the Prime Minister, the Iraqi Ambassador to the United Kingdom, and a number of Iraqi and British businessmen."
The statement added that "the Deputy Prime Minister and Minister of Foreign Affairs delivered the opening speech of the seminar, which focused on ways to stimulate and support the private sector in the commercial aspect, and how to develop cooperation with its British counterpart, within the framework of the government's orientation to support the Iraqi private sector and open up prospects for cooperation with solid international companies."
He continued: "Bilateral meetings were also held between the private sectors in both countries to discuss enhancing cooperation and partnership in various fields, in addition to presenting the opportunities available for British companies to enter the Iraqi market."
Next week.. Hosting and data auditing inside the Iraqi parliament to settle the dues of the Kurdistan Region
The Finance Committee of the Iraqi Council of Representatives announced on Thursday that the temporary subcommittee to follow up on the dues of the Kurdistan Region will begin its work next week, and officials from the Ministry of Finance, the Financial Supervision Bureau, and the Central Bank will be hosted to determine the truth about the distribution of dues to the region.
Committee member Mustafa Al-Karawi told Shafak News Agency, "The Parliamentary Finance Committee formed a subcommittee a few days ago to follow up on the Kurdistan Region's dues for the year 2024-2025 and to audit the data received from the federal government after the regional government objected to this data."
Al-Karawi explained that "the interim parliamentary committee will begin its work next week to determine the truth about the distribution of dues to the Kurdistan Region and its financing."
He pointed out that "the committee will host officials from the Ministry of Finance, the Financial Supervision Bureau, and the Central Bank, and then there will be an audit of the numbers and data according to the region's request."
Al-Karawi stressed that "the aim of the parliamentary committee's work is to keep citizens away from any political disputes and to receive their dues and salaries at the specified times."
The Finance Committee of the Iraqi Council of Representatives decided to form a special committee to follow up on the financial dues of the Kurdistan Region for the years 2024 and 2025.
According to a letter signed by the head of the Parliamentary Finance Committee, Atwan Al-Atwani, dated January 11, it was decided to form a subcommittee headed by Ahmed Mazhar Al-Jubouri, the first deputy head of the Finance Committee.
The committee includes six members: Adi Awad Kazim, Narmin Marouf Ghafour, Mustafa Khalil Al-Karawi, Faisal Hassan Sakr Al-Naili, Jamal Ahmed Muhammad Kujar, and Samir Mubarak Mirza (Rapporteur of the Finance Committee).
The formation of this committee coincides with the demand of the Kurdistan Regional Government, ministers and representatives of the region in Baghdad, on January 11, for the federal government to guarantee the salaries of employees and workers in the public sector in the region for the current year in full without any reduction.
This came in a press conference held by government spokesman Peshwa Hawrami in Erbil following the conclusion of an extraordinary meeting of the regional government with representatives of the region in Baghdad on the issue of employees’ salaries.
During the conference, Horamani said that the attendees demanded that the federal government send the region’s share of the federal budget for the current year, not just monthly salaries.
He added that so far, less than 7 percent of the region's share of the region's financial dues has been sent, noting that the federal government has not sent Kurdistan's salaries for December 2024, despite making a promise to do so.
The spokesman also said: We want to resolve the differences between the federal government and the regional government this year, stressing that Baghdad does not deal with Kurdistan as a constitutional federal entity.
He stated that the regional government had handed Baghdad all the statistics related to financial revenues and the number of employees in the region, noting that Kurdistan's rights were preserved within the amendment to the draft budget law for the current year.
For its part, the Ministry of Finance and Economy in the Kurdistan Region confirmed last Tuesday that the Federal Ministry of Finance did not abide by the decisions of the Federal Court (the highest judicial authority in Iraq) regarding financing the salaries of employees and workers in the public sector in the region, denying at the same time that non-oil revenues for the year 2024 had not been delivered.
The Ministry of Finance in Kurdistan issued a detailed statement in response to the Federal Finance statement issued on January 12 regarding the disbursement of dues to employees of the Kurdistan Region.
The Iraqi Ministry of Finance said last Sunday that it does not bear responsibility for the failure to pay salaries to the Kurdistan Region on their specified dates, indicating that the delay in paying them is a result of the regional government’s failure to abide by the Federal Court’s decision to localize the salaries of their employees.
Sudanese seeks technical assistance from EBRD to boost banking sector
On Thursday, the Iraqi Prime Minister, Mohammed Shia al-Sudani, requested technical assistance from the European Bank for Reconstruction and Development (EBRD) to strengthen and develop the banking sector in Iraq, while stressing that the government has many projects that the bank can contribute to financing, including vital infrastructure projects such as roads, bridges and public transportation.
This came during his reception at his residence in London of a delegation from the European Bank for Reconstruction and Development (EBRD), headed by the bank’s president, Odile Renaud-Basso.
According to a statement by the Prime Minister's media office received by Shafaq News Agency, Al-Sudani expressed his appreciation for the approval of the bank's members for Iraq to join it in October of last year, stressing the importance of the partnership with the bank, especially since it includes cooperation in many sectors that the government has placed among the priorities of its government program.
During the meeting, according to the statement, the mechanisms for implementing the agreement signed with the bank, which was previously voted on by the House of Representatives, and the role of the bank in developing the Iraqi private sector were discussed, in addition to discussing opportunities for cooperation in renewable energy projects, including solar and wind energy, to reduce carbon emissions and increase energy efficiency.
The Prime Minister stressed that the government has many projects that the Bank can contribute to financing, including vital infrastructure projects such as roads, bridges and public transportation, especially in areas affected by the conflict, as well as requesting technical assistance from the Bank to strengthen and develop the banking sector in Iraq, pointing out the importance of the Bank President visiting Iraq to explore potential opportunities for cooperation.
During the meeting, it was proposed to establish a joint working group to determine the priorities of the projects in which the European Bank for Reconstruction and Development will participate in Iraq, according to the statement.
Iraq calls on the world to conduct a comprehensive reform of the financial system and a dialogue on technology governance
In his statement, the representative of Iraq stressed the complex and interconnected global challenges, including ongoing conflicts, the effects of climate change, poverty, hunger, high debt levels, limited financing for the Sustainable Development Goals, and the growing digital divide. He stressed the need to support developing countries in financing sustainable development through the Fourth Conference on Financing for Development.
He called for a comprehensive reform of the global financial system to address structural inequalities, ensure equitable access to long-term finance, and advance sustainable development efforts. He also stressed the importance of fully implementing the decisions of the Conference of the Parties on Climate Change, while supporting the Secretary-General’s efforts to achieve the Sustainable Development Goals by 2030.
Obaid also called for a comprehensive international governmental process to address the digital divide, the establishment of an independent scientific team for artificial intelligence, and the launch of a global dialogue on technology governance.
Parliamentary Finance: These are the reasons for the delay in the arrival of the general budget tables to the House of Representatives
The Parliamentary Finance Committee revealed the reasons for the delay in sending the tables of the Federal General Budget Law from the government to the Council of Representatives.
Member of the committee, MP Jamal Kocher, stated in a statement to the National Iraqi News Agency / NINA / that "the government sent the draft amendment to the General Budget Law more than 3 months ago to the Council of Representatives at that time, and the Finance Committee was supposed to proceed since then to approve the amendment, because without the draft amendment to the budget law, the government cannot send the tables."
He added, "One of the reasons for the delay in sending the general budget tables to the Council of Representatives is the failure to legislate the amendment to the law, and there are also other observations and objections by some representatives about the text of the law," indicating: "Other representatives requested the presence of the Minister of Finance and officials of the concerned authorities to the Council of Representatives to discuss the text of the new amendment, because the change in the draft law will add new burdens to the original budget."
The Council of Representatives decided to add a new paragraph "Voting on the draft amendment to the General Budget Law" to the agenda of its session scheduled for next Sunday.
To protect his savings.. Dollar fluctuations "force" Iraqi citizens to buy "gold"
Economic affairs specialist Alaa Al-Fahd revealed, today, Thursday (January 16, 2025), the reason for the recent increase in gold imports in Iraq.
Al-Fahd told Baghdad Today, "The increase in gold imports has several economic implications, including that citizens are working to keep gold as part of their savings, as it is more reliable and stable, as a result of the fluctuations in the dollar."
He explained that "the other reason is an improvement in income levels with a savings surplus, and this is what drives citizens to buy gold, and this is part of the positive situation, as the process of increasing gold imports is a healthy economic situation, and this is reflected in the Iraqi market."
Citizens usually prefer to buy gold during times of instability, rising inflation rates, economic problems, and fluctuations in the buying and selling of the dollar, as it is a safe haven and a protector from the risk of financial market collapse.
Experts say that the importance of saving gold has several advantages, the most important of which is that gold savings accounts provide their owners with a unique opportunity to diversify their investment portfolios and protect their wealth from market fluctuations.
Others say, "Gold retains its value over the long term, and is easy to sell, because it is unlikely to be worth less when you buy it."
Electronic Payment: Launch of the “We Reach You” Initiative to Promote Financial Inclusion in Iraq
The Electronic Payment Team announced today, Thursday, the launch of the "We Reach You" initiative to enhance financial inclusion in Iraq, while stressing the provision of services in line with the government's direction.
The head of the team, Nabil Al-Najjar, said in a statement to the official agency, which was reviewed by /Al-Youm Al-Akhbariya/, "We announce the official launch of the "We Reach You" initiative, which aims to enhance financial inclusion and spread financial culture in various Iraqi cities, districts and sub-districts."
He added that "the initiative is to facilitate access of individuals and merchants to official financial services by activating electronic collection tools, spreading modern payment tools, and encouraging the opening of bank accounts, which contributes to supporting the national economy and achieving digital financial transformation in Iraq.
" Al-Najjar explained that "the "We Reach You" initiative is sponsored by the Prime Minister's Office, the Central Bank and the Government Communication Team, which attended the campaign launch events in the person of the Deputy Head of the Government Communication Team, Adnan Al-Arabi, who stressed the importance of bringing financial services to the farthest point in Iraq," stressing "the importance of providing services in line with the government's direction that aims to enhance financial culture and provide it to all segments of the Iraqi people."
Iraqi delegations arrive in Washington to participate in Trump's inauguration ceremony
Informed political sources revealed on Thursday that more than one Iraqi political delegation of Sunni figures has arrived in the US capital, Washington, as part of attempts to attend the inauguration ceremony of US President-elect Donald Trump, scheduled for January 20.
The sources explained that this visit took place without prior coordination with the Iraqi government or informing the embassy in Washington, which makes it an unofficial visit.
The information obtained by Shafaq News Agency indicated that the arrangements for this visit were made through contracting with "private lobbies" in Washington, which organized the process for the benefit of Iraqi political leaders, and that the contracts concluded with these "lobbies" start at a minimum of $150,000 per month, and extend for a period ranging between one and three years, in addition to the costs of travel from meetings with members of Congress or media outlets, which are between $250-500,000 per trip. The
private sources added that the attendance of the unofficial delegations to the inauguration ceremony has not yet been confirmed, as work is being done to involve them through these "lobbies."
She also noted that an official delegation from Baghdad and Erbil might participate in the inauguration ceremony, without providing further details.
Revealing the mechanism for transferring dollars after the platform was suspended by the Central Bank of Iraq
Economic affairs specialist Nasser Al-Tamimi revealed, today, Thursday (January 16, 2025), how to transfer dollars after the platform was suspended by the Central Bank of Iraq.
Al-Tamimi told Baghdad Today, "The dollar transfer will not stop after the platform is stopped, but only the transfer method is different. Traders no longer deal directly with the Central Bank of Iraq for the purpose of making transfers, but rather their dealings are with banks, which have correspondence with international intermediary banks."
He added, "The fear of this step is that the dollar has become a monopoly of some banks, most of which are foreign and not local, and for this reason the Central Bank of Iraq is required to expand these items and make the local banks the leaders in foreign transfer operations. Also, the work of these banks must be monitored, so that Iraq is not exposed to any new sanctions, due to some transfers that may be illegal and unlawful."
On Sunday (January 12, 2025), financial and economic expert Nasser Al-Tamimi confirmed the failure of the Central Bank of Iraq to control the dollar file over the past three years .
Al-Tamimi said in an interview with Baghdad Today, "The Central Bank of Iraq has stopped the dollar selling platform and restricted this matter to some banks, and for this reason there has become a new monopoly on the dollar by certain banks, most of which are foreign and not Iraqi, and this confirms the bank's continued failure to control the dollar file ."
He explained that "despite all the decisions and measures taken by the Central Bank of Iraq to control the dollar for many months, it failed to limit the rise in the exchange rate in the parallel market, as it did not find any solution to finance the foreign trade of some traders, who depend mainly on the parallel market, and this is what caused the instability and rise during the past two years."
Al-Sudani meets with Iraqi students studying in British universities.. This is what he stressed
Prime Minister Mohammed Shia al-Sudani met in London on Thursday evening with a number of Iraqi students studying at British universities, on the sidelines of his official visit to the United Kingdom.
A statement from Al-Sudani’s office stated that “he was briefed on the progress of the academic conditions and the necessary requirements and needs of the students, and directed the resolution of the administrative obstacles facing some of them, stressing that the government pays exceptional attention to the students on scholarships, and relies on what they will achieve on the scientific and academic level, and the experience they will gain in various academic and scientific fields, and employing it to serve Iraq.”
He explained that “the Council of Ministers approved adding an amount of 62 billion dinars to the 2025 budget tables to support students on scholarships, in order to provide the requirements to complete their studies and ensure the continuation of their salaries, confirming the high interest that the government gives to scholarships and opportunities for Iraqi students to obtain higher degrees from reputable international universities.”
Al-Sudani leaves London for Baghdad after concluding his visit to the United Kingdom
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Prime Minister Mohammed Shia Al-Sudani concluded his visit to the United Kingdom today, Friday (January 17, 2025), and headed to Baghdad.
Al-Sudani's media office stated in a statement received by "Baghdad Today" that the latter "left the British capital, London, heading to Baghdad after concluding his official visit to the United Kingdom, which included the following:
- Meeting with His Majesty King Charles III of the United Kingdom.
- Meeting with British Prime Minister Keir Starmer.
- Heading the Iraqi delegation in the extensive bilateral talks between the two countries.
- Issuing a joint statement with the Prime Minister of the United Kingdom.
- Signing a broad partnership and cooperation agreement with the United Kingdom.
- Meeting with British Foreign Secretary David Lammy.
- Meeting with British Defense Secretary John Healey.
- Meeting with British Home Secretary Yvette Cooper.
- Meeting with the British Minister of Science and Technology.
- Receiving a delegation from the European Bank for Reconstruction and Development (EBRD).
- Meeting with former Prime Minister Ibrahim Al-Jaafari.
- Receiving representatives of 24 major British companies specializing in various sectors and activities.
- Receiving the CEO of Shell Oil Company.
- Receiving a delegation from Stellar Energy.
- Receiving a delegation from Technip Energy.
- Receiving a delegation from BAE Systems for military industries and cyber security.
- Receiving representatives of the company (UGT), specialized in renewable and clean energy.
- Receiving a delegation from General Electric Company (GE).
- Receiving representatives of four Irish companies specialized in different fields.
- Receiving a delegation from the British telecommunications company Vodafone.
- Meeting with the Chairman of the Board of Directors of the British Clayton Company.
- Receiving the President of the Oxford Centre for Islamic Studies in the United Kingdom.
- Receiving a group of British university presidents.
- Honoring the Prime Minister by the University of Greenwich, UK.
- The Prime Minister honored the Iraqi Professor Bashir Al-Hashemi for receiving the title of (Knight) from the King of Britain.
- Meeting a group of Iraqi students studying in British universities.
- Granting 20 study seats from the University of Greenwich to Iraqi master’s students in various specializations.
- Signing 12 memoranda of understanding in various specializations with British universities.
- Signing 8 memoranda of understanding between the Iraqi public and private sectors and British companies.
- Signing a memorandum of understanding with British Petroleum (BP).
- Signing a Memorandum of Understanding on Climate Change, Environment and Carbon Economics.
- Signing a Memorandum of Understanding between the Sovereign Guarantees Initiative Committee and the British Export Credit Guarantee Corporation.
- Participation in a dialogue seminar held by Chatham House in London.
- Participation in a financial seminar attended by major British companies and the Iraqi private sector.
- Holding a dialogue seminar for the Iraq-British Business Council (IBBC).
- Taking care of receiving archival documents related to Baath crimes.
- Meeting a number of members of the Iraqi community in Britain.
- Opening of the Iraqi Cultural Center in London.
- Receiving an archaeological tablet dating back to the Assyrian era.
- The Cultural Advisor to the Prime Minister was sent to offer condolences to the family of the late architect Hisham Al-Madfai in London.
Meetings and press interviews of the Prime Minister:
- Meeting with a group of senior editors-in-chief of Arab newspapers, opinion writers, and Arab and foreign journalists.
- Conducting a televised interview with BBC Arabic and English.
- Conducting a televised interview with the English channel (SKY NEWS).
- Interview with the Financial Times.
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